Alliance Capital Management L.P. Reports Record Quarterly Earnings and Increased Distribution to Unitholders Assets Under Management Exceed $217 Billion.

NEW YORK--(BUSINESS WIRE)--Nov. 3, 1997--Alliance Capital Management L.P. (NYSE: "AC") today reported net income of $66.2 million or $0.76 per Unit for the quarter ended September 30, 1997, an increase of 35.1% from $49.0 million or $0.57 per Unit for the quarter ended September 30, 1996. Revenues for the quarter ended September 30, 1997 increased 26.7% to $250.8 million versus $198.0 million for the third quarter of 1996. Assets under management as of September 30, 1997 grew to $217.3 billion.

The Partnership also announced a distribution of $0.74 per Unit for the third quarter of 1997, a 34.5% increase over the $0.55 distributed for the third quarter of 1996 and a 15.6% increase over the $0.64 distributed for the second quarter 1997. The third quarter distribution is payable on November 28, 1997 to holders of Units at the close of business on November 20, 1997.

Net income for the nine months ended September 30, 1997 was $55.4 million or $0.64 per Unit versus $141.1 million or $1.66 per Unit for the prior year period. Year-to-date net income and net income per Unit were reduced by a $121 million noncash charge, or $1.40 per Unit, as previously announced in the second quarter of 1997 resulting from the write-down of certain intangible assets to estimated fair value. Excluding that charge, net income increased 25.0% to $176.3 million or $2.04 per Unit for the nine months ended September 30, 1997. Revenues for the nine months ended September 30, 1997 were $695.4 million, an increase of 20.8% from the $575.8 million in revenues for the prior year period.

Chairman Dave H. Williams observed, "Record domestic and foreign mutual fund sales, favorable financial markets and our solid investment performance across a broad range of investment disciplines resulted in record quarterly results."

Williams further noted, "Alliance Capital achieved important milestones this quarter, including more than $80 billion in mutual fund assets under management, $25 billion invested in our Large Cap Growth separate account portfolios, $20 billion in money market fund assets and over $1 billion in our Japanese investment trust subsidiary, all culminating in Alliance crossing the $200 billion threshold in assets under management. We are extremely pleased with these achievements, and remain committed to delivering superior performance and service to both our clients and Unitholders."

Recent Business Highlights:

--The Alliance Premier Growth Fund ("Premier Growth") celebrated

its five-year anniversary on September 28, 1997. Premier Growth

has produced impressive returns for its shareholders. Premier

Growth ranks in the top 2% of all growth funds for one year, in

the top 1% for three years and in the top 12% for five years,

as reported by Lipper Analytical Services, Inc.

--Alliance announced the formation of two new joint venture

companies, bringing the total number of international joint

venture initiatives to seven. Alliance Capital Management

(Proprietary) Limited will be owned by Alliance and Odyssey

Investments, a leading South African black-owned investment

group. In addition, Alliance has signed a letter of intent with

Hanwha Securities under which Alliance will purchase a 20%

ownership stake in Hanwha Investment Trust Management Company

Ltd. in Korea.

--New-Alliance Asset Management (Asia) Limited ("New-Alliance")

opened its office in Hong Kong. This 50-50 joint venture with

Sun Hung Kai Properties Ltd. was first announced in March of

this year. New-Alliance will distribute Alliance's offshore

mutual funds to Asian customers, offer its own family of funds

and manage client assets invested in the markets of China,

Hong Kong or Taiwan.

--Alliance Capital announced it will remain a publicly traded

limited partnership as permitted by The Taxpayer Relief Act of

1997. The Act includes the option for certain publicly traded

partnerships to maintain partnership tax status beyond 1997, and

pay a new tax of 3.5% on partnership gross income.

Alliance Capital is a large global investment adviser, with more than $217 billion in client assets under management. The firm manages retirement assets for many of the largest public and private employee benefit plans including 28 of the nation's Fortune 100 companies, public employee retirement funds in 33 states, as well as managing assets for foundations, endowments, banks and insurance companies. Alliance Capital is also one of America's largest mutual fund sponsors with a diverse family of fund portfolios and over three million shareholder accounts. As of September 30, 1997, the Partnership's general partner, a wholly-owned subsidiary of The Equitable Companies Incorporated ("EQ"), owned a 1% general partnership interest in Alliance and approximately 57% of the Partnership's outstanding Units are beneficially owned by EQ. -0-

                  ALLIANCE CAPITAL MANAGEMENT L.P.
             SUMMARY CONSOLIDATED STATEMENTS OF INCOME
         (unaudited, in thousands except per Unit amounts)

                             Three Months Ended    Nine Months Ended
                             9/30/97    9/30/96    9/30/97   9/30/96
                             -------    -------    -------   -------
Revenues:
 Investment advisor
 and services fees:
   Alliance mutual funds    $102,957   $ 72,980   $275,698  $212,653
   Separately managed
    accounts:

      Affiliated clients      12,665     10,833     38,509    32,699

      Third party clients     62,363     57,907    181,393   167,109

 Distribution plan fees
 from Alliance mutual funds   56,764     42,032    153,317   121,097

 Shareholder servicing
 and administration fees      13,859     11,990     40,150    35,141

 Other revenues                2,240      2,256      6,368     7,064
                             -------    -------    -------   -------
                             250,848    197,998    695,435   575,763
                             -------    -------    -------   -------

Expenses:
 Employee compensation
 and benefits                 66,061     53,774    188,899   157,340

 Promotion and servicing:
   Distribution plan
   payments to financial
   intermediaries:
     Affiliated               15,407      7,828     39,448    22,520

     Unaffiliated             30,655     29,170     88,889    83,536

   Amortization of deferred
   sales commissions          19,266     13,406     52,651    38,772

   Other                      14,959     11,714     44,808    36,023

 General and administrative   31,709     24,584     83,005    73,539

 Interest                        713        605      2,005     1,319

 Amortization of
 intangible assets               881      4,259      6,124    11,353

 Reduction in value
 of intangible assets           --         --      120,900      --
                             -------    -------    -------   -------
                             179,651    145,340    626,729   424,402
                             -------    -------    -------   -------

 Income before income taxes   71,197     52,658     68,706   151,361

   Income taxes                4,988      3,701     13,270    10,307
                             -------    -------    -------   -------

 Net income                 $ 66,209   $ 48,957   $ 55,436  $141,054
                            ========   ========   ========  ========

 Net income per Unit        $   0.76   $   0.57   $   0.64   $  1.66
                            ========   ========   ========  ========

 Net income before
 reduction in value of
 intangible assets          $ 66,209   $ 48,957   $176,336  $141,054
                            ========   ========   ========  ========
 Net income per Unit
 before reduction in value
 of intangible assets       $   0.76   $   0.57   $   2.04  $   1.66
                            ========   ========   ========  ========
 Weighted average
 Units outstanding            86,194     84,880     85,736    84,222
                            ========   ========   ========  ========

 Distributions per Unit     $   0.74   $   0.55   $   1.98  $   1.60
                            ========   ========   ========  ========

                                         September 30,    December 31,
                                        1997       1996       1996
                                       ------     ------     ------
 Assets Under Management (millions)  $217,320   $173,692    $182,792
                                     ========   ========    ========

CONTACT: Media:

Duff Ferguson

212/969-1056

or

Investors:

Anne Drennan

212/969-6443